FINRA Cancels Global Arena Capital’s License

Cancellation is a direct result of alleged failure to pay fees

Global Arena Capital, a New York firm founded in 1985, was stripped of its license by FINRA on July 20. The license cancellation resulted from the firm’s failure to pay outstanding fees of nearly $50,000 to FINRA, but its previous disclosures in the past several years, specifically in dealing with senior investors, may have negatively impacted the firm’s ultimate fate.

The firm’s bad blood with senior investors was first revealed in July 2014, when a complaint was filed because representatives of the firm allegedly deceived and misled a senior investor by falsely promising high rates of return on a risky investment that they represented as a safe investment. According to FINRA, the bonds the representatives sold the investor were “junk bonds,” which are known to be particularly high risk.

Regulatory authorities in Alaska responded to the manipulation by issuing a cease and desist and fining the firm $150,000. The case was resolved July 30, according to FINRA reports, just 10 days after FINRA cancelled the firm’s license.

In 2013, the firm was found in violation of several FINRA and National Association of Securities Dealers (NASD) rules regarding the maintenance of email records. During a routine examination of the firm, it was discovered that the firm did not have a system to preserve at least the last three years’ worth of email communications. The examination also found failings in timely reporting of customer disputes and complaints as well as a lack of written supervisory procedures, among other concerns. Prior to this, the firm had no relevant disciplinary history, according to FINRA.

If you have suffered financial loss as a direct result of the misconduct of Global Arena Capital or any of its financial advisers, you may be entitled to loss recovery through securities arbitration. To discuss your legal options and investigate your rights, contact Silver Law Group for a free consultation. Each case is handled on a contingent-fee basis, meaning that you will only pay legal fees if Silver Law Group is successful.